The suspension of the Tel Aviv-Delhi run has been stretched to the end of July. You can see the effect in the market: with capacity down, fares are up and there are not as many open seats for the Indians in Israel. Some other airlines are making a tentative comeback, but this is Air India’s way of being circumspect given the uncertainty in the region.
What changed and why
According to the airline, the route is off-limits through 31st July because of the situation on the ground. We’ve seen this before; they first put a stop to it in May, then June, and have just tacked on another month to the pause.
We were told by a senior executive in charge of our Israel side of things that a schedule change has been put in place. Ever since the conflict in West Asia got going in late February, we’ve been dealing with more expensive fuel and restrictions in the sky. It makes running the numbers and planning the network a lot more of a headache.
Impact on travellers and market
If you are an Indian in Israel, this means you’ll be contending with hard-to-find seats and higher costs for a while longer. It’s a particular strain on workers and families who have to make time-sensitive moves. The whole thing is a bit of a wild card for anyone trying to put together a trip to or from India.
Here are the main takeaways:
– No flights on the books till 31st July
– This is an extension of the holds we had in May and June
– With less to choose from, you can expect to see ticket prices go up
Competitive landscape on Tel Aviv routes
Even with a ceasefire in place, you won’t see most of the big international names in Tel Aviv yet; they are still wary. A couple have come back, and you have the Israelis like Arkia, El Al, Air Haifa and IsraAir in the mix, but overall connectivity from here is thin.
So with Air India out of the picture for July, you lose a direct line to India. Passengers are left to the carriers with more limited timetables. When everyone is vying for the same space, it puts a premium on the fare and doesn’t leave you with much room to manoeuvre if you’re in a hurry.
Strategic read of Air India’s decision
You could call it good risk management. In a corridor as unpredictable as this one, with the kind of headwinds we have in terms of fuel and airspace, the last thing we want to do is put on a costly, messy operation for a short-term gain in capacity.
But it is a business call. We are ceding some of the traffic and profile on a route with a large diaspora to a few of our competitors. The upshot for the customer is steeper prices and not as many options to get to India for the rest of the month.
Outlook for July and beyond
We aren’t in a position to give you a date after July. We’ll have to wait and see how the security environment plays out. It’s a case in point of how the ripples from what happened in late February are still being felt in our schedules.
For the time being, don’t expect any let-up in the constraints on the India-Israel leg. The more we are in limbo, the harder it is to plan and the more it will cost for those who need to be on a plane for work or family reasons.
